A theoretical Significance of improvising market performance in the digital economy

Management Studies

We are well aware of the fact that the digital economy has considerably and substantially reduced market frictions and has also posed new challenges for efficient functioning of various markets. Also in particular the seaming drastic reductions in costs of search, transportation, entry and reproduction all have sound and profound implications for the role of platforms, value of innovation and also balance between firm’s data needs as well as consumer privacy. Off late there is a proper structure promoting the development of applied digital technology through research based education centers and also international competence centers. Properly creating the conditions for a more reliable and secure process of generating, storing and also using data is the primary basis for protection from the cyber security hazard that which could act as a brake on technology advancement aspects. The research paper reviews some major recent economic research that which sheds light on major issues and also discuss as to how well designed policies on competition, regulation, consumer privacy and IP protection can all improve market performance in the digital economy. The research paper also highlights important implications for encouraging digital entrepreneurship aspects by focusing mainly on institutional, technology as well as local dimensions of context and various other such measures to develop significant entrepreneurial and digital competencies. It also includes policy interventions to develop information and communication technology (ICT) infrastructure, transport and other local distribution infrastructure and other such training opportunities to essentially develop digital entrepreneurs for improvising market performance in the digital economy.

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